Saturday, June 7, 2014

Equities futures break resistance. What I will pay attention to in the Charts now.

This is a follow up on yesterday's post outlining the key chart developments here.  Well the shorts must be nervous going into the weekend as the Russell 2000 and S&P 500 broke out from minor resistance in the Daily timeframe and closed near top tick on the session.  Volume was down from the previous day.  A Monday bearish day and close back beneath these trendlines with increasing Volume might set up an opportunity for a near term reversal and an entry to go short with well defined risk above the swing.  In the meantime the trend might be up near term so those sitting with a losing short from down below and praying is one really bad spot to be in as it usually leads to pain when holding onto the wrong side of a breakout.

(Click on charts to expand)

S&P 500 (ES) - Notice the Volume Moving Average which has been going south while the market goes parabolic here.

Russell 2000 (TF)

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  1. Great chart analysis, Scott.

    Good to have you back posting frequently.